The British paratrooper Lee Clegg has been cleared of murdering Belfast teenager Ms Karen Reilly during an incident involving a stolen car in west Belfast in September 1990.
But Mr Justice Kerr, who upheld Clegg's conviction of attempting to wound Mr Martin Peake with intent, said Clegg had lied in his evidence.
The judge spoke of a "farrago of deceit and untruth" but could not be certain Clegg had fired the shot which entered the rear of the car.
Mr Sean Reilly, Karen's father, left the court yesterday in a distressed state.
While unionist politicians welcomed the decision, Dr Joe Hendron, the SDLP MP for West Belfast at the time, said Ms Reilly (18) and Mr Martin Peake (17), who died with her, were victims of a "summary execution".
The Minister for Foreign Affairs, Mr Andrews, said there had been widespread concern in the nationalist community about the case. The Government had repeatedly expressed concern over it within the framework of the Anglo-Irish Intergovernmental Conference, he said.
Clegg (30) was convicted in 1993 of Ms Reilly's murder. She was a passenger in a stolen Vauxhall Astra which sped through a checkpoint on the Glen Road in west Belfast. He was sentenced to life in prison, and also to four years for attempting to wound with intent the car driver, Mr Peake.
Clegg was released after serving 2 1/2 years, a decision that caused rioting in nationalist west Belfast. He was allowed to return to the British army and was promoted to lance corporal.
In Belfast Crown Court yesterday, Mr Justice Kerr overturned the murder judgment of the original trial which was upheld both at appeal and in the House of Lords. He upheld the conviction of attempting to wound Mr Peake with intent.
Following new forensic evidence, the retrial had focused on whether Clegg fired through the rear of the stolen car after it had passed his patrol or through the side as it passed him. It was contended that firing from the rear was unlawful because the patrol would not then be in danger. Firing from the side, however, could be justified as a defensive action.
In his 4 1/2-hour judgment Mr Justice Kerr said he could not be sure Clegg fired the shot that entered the rear of the car: "I think it is very likely that he did, but I cannot be sure of it. He is therefore entitled to be acquitted in relation to this shot," he said.
Mr Simon McKay, Clegg's legal adviser, said the death of "Karen Reilly would always be on Lee Clegg's conscience". He said Clegg and his family were overwhelmed by the decision. "All of them broke down in tears."
While unionists and British campaigners for Clegg were generally happy with the outcome, Dr Hendron said Ms Reilly and Mr Peake had been "summarily executed by the so-called elite of the British army".
